Anti-Russian sanctions have taken a toll on both sides, said Russian President Vladimir Putin to Italian Prime Minister Matteo Renzi, estimating the loss suffered by Italian arms manufacturers at €1 billion.

"For well-known
reasons the trading volume [between Russia and Italy – Ed.]
declined by one-tenth in 2014 and by one quarter in the first
three months of 2015…Such a state of affairs, of course, cannot
suit us - both the governments and business communities in both
countries,” the Russian President told reporters after talks
with Prime Minister Renzi in Milan on Wednesday.

“Honestly speaking, cooperation there is not so hot; it is
not of vital importance for ensuring the Russian defense
capability. But because we suspended some preplanned joint
actions and contracts, Italian companies received €1 billion less
they were due. They could have earned this money, could have had
their enterprises' production capacities utilized, could have
created or maintained jobs. But this did not happen because of
the sanctions,” Putin said.

Sanctions pushed Russia
to carry out a program of import substitution, which is in a
certain way good for Russian industry and hi-tech, but, all in
all, they [sanctions – Ed.] cause damage to the cooperation, he
added.

There is no doubt Russia will find new partners, but we should
not abandon well-established tools and mutually beneficial
contracts, Putin said.

Speaking of Russia’s relationship with the G7, he wished it good
luck, saying it had not become a political organization, but a
club.

“We have no
relations with G7, but if partners want, we will develop
relations with any G7 country on a bilateral basis”, Putin
said.